Qantas 2010 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2010 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

33 ANNUAL REPORT 2010
for the year ended 30 June 2010
Directors’ Report continued
The Remuneration Report sets out remuneration information for Non-Executive Directors, the Chief Executive Of cer (CEO) and Executive Committee.
The Key Management Personnel (KMP) and  ve highest remunerated Executives for the 2009/2010  nancial year are members of the Executive
Committee (full membership is listed on page 14).
The format and content of the Remuneration Report has changed compared with recent years. This re ects changes that have been made to the
Executive Remuneration Framework over the past year, with the introduction of a new Short Term Incentive Plan from 2009/2010 and the completion
of a review of the Long Term Incentive Plan.
The information has been presented more concisely, while still providing the detailed disclosure elements required under the law for the
Remuneration Report.
1) EXECUTIVE REMUNERATION OBJECTIVES AND APPROACH
In determining Executive remuneration the Board aims to do the following:
—Attract, retain and appropriately reward a capable Executive team
—Motivate the Executive team to meet the unique challenges it faces as a major international airline based in Australia
—Link remuneration to performance
To achieve this, Executive remuneration is set based on the size and nature of the role (with reference to market benchmarks) and the performance
of the individual in the role. In addition, remuneration includes “at risk” or performance related elements for which the objectives are to:
—Link Executive reward with Qantas’ business objectives and  nancial performance
—Align the interests of Executives with shareholders
—Support a culture of employee share ownership
—Support the retention of participating Executives
2) ROLE OF THE REMUNERATION COMMITTEE
The Remuneration Committee (a committee of the Board, whose members are detailed on pages 10 and 11) has the role of reviewing and making
recommendations to the Board on Executive remuneration at Qantas and ensuring remuneration decisions are appropriate from the perspectives of
business performance, governance, disclosure, reward levels and market conditions.
In ful lling its role, the Remuneration Committee is speci cally concerned with ensuring that its approach will:
—Motivate the CEO, Executive Committee and broader Executive team to pursue the long-term growth and success of Qantas
—Demonstrate a clear relationship between performance and remuneration
—Ensure an appropriate balance between “ xed” and “at risk” remuneration, re ecting the short and long-term performance objectives of Qantas
—Differentiate between higher and lower performers through the use of a performance management framework
The Remuneration Committee considers advice from a range of independent external advisors in performing its role. The principal advisors referred
to are PricewaterhouseCoopers, Ernst & Young and the HayGroup.
Remuneration Report (Audited)